Thursday, May 19 2016 00:40 EEST
Russian state-owned banks decided to leave Ukrainian market
Ukraine, Russia, politics, visa, terms, regime, affective, cooperation, steps, abroad, rights, parties, statement, ministry, economic, trade, development, freedom, sphere, bank, money, state-owned, assets, Putin, alfa group, market
photo: Gennady Cherkasov

Due to current political situation Russian state-owned banks are seeking to sell their subsidiaries in Ukraine. Thus, Sberbank, VTB and Vnesheconombank are going to leave Ukrainian market. According to some sources, Sberbank has held negotiations on sale of its 'daughter', but they were unsuccessful. But one source notes that the bank is still seeking a buyer.

VTB Bank is more likely to sell its Ukrainian business than continue its development, as it can see no opportunities for the development in the country.

'As for Ukraine, we have really substantial losses there. We cannot see any great economic and political opportunities. I think if we had this chance, we would even sell the business than increase or preserved it, because we can see no opportunities there,' the head of VTB Andrey Kostin said on the Investor Day in London.

VEB is searching for a buyer of its daughter company Prominvestbank too. Russian state-owned banks haven’t reported any plans to sell their daughters before.

Experts can see no serious contradictions between the improvement of the situation in Ukraine and the wish of state-owned banks to sell the assets.

'Notification of a possible leaving withdrawal of Russian banks from the Ukrainian market are first of all given due to the inertia of decision-making and just secondly by the real need,' managing partner of FinPoint Sergey Budkin says. According to him, the need can be better explained by a political factor because 'it’s extremely uncomfortable to run business with Russian funds and especially with the bank in Ukraine.'

At the same time, Ukraine has Alfa Group whose scale is quite comparable to the banks mentioned above. However, unlike the Russian state-owned banks, Alfa Group isn’t looking for the exit from the Ukrainian market, but It's increasing presence by buying Unicredit Group’s Ukrsotsbank and considering other assets.

latest news